Aussies favour shopping online during Covid19
SYDNEY/MELBOURNE: Australian retailers are being forced to digitalise their physical offerings as more customers go online during the coronavirus pandemic, new analysis from AMP Capital suggests.
The researchers found that, during the early Covid19 lockdown, restrictions on consumer spending plummeted to near record lows.
Consumer spending online hit a high of 11 percent of all retail spending during the period, facilitated by travel restrictions, a shutdown of non-essential stores and fears of crowded shopping centres.
“Other behavioural changes – like lower spending on eating out, recreation and travel, in favour of household goods furnishings – are temporary, but will take a while to recover back to pre-Covid levels,” said Diana Mousina AMP Capital senior economist.
She said that, despite the fall in Australian employment since March, government payments such as JobKeeper and the early access to superannuation schemes have actually seen total household incomes rise.
Mousina said Australians are likely to continue seeing physical retail assets collapse into administration or the rapid digitisation of storefronts into e-commerce platforms.